Chewy (CHWY) Shares Fall Even as Market Rises: Key Points to Consider

Chewy Stock Performance Update

Chewy (CHWY) ended the latest trading session at $25.51, reflecting a decline of 4.96% from the previous day. In comparison, the S&P 500 advanced by 0.78%, the Dow rose 0.49%, and the Nasdaq, known for its technology focus, increased by 1.29%.

Over the past month, Chewy’s share price has slipped by 0.92%. This is a smaller drop than the broader Retail-Wholesale sector, which fell 6.17%, and also outperformed the S&P 500’s 1.33% decrease during the same period.

Investors are closely anticipating Chewy’s upcoming earnings announcement, scheduled for March 25, 2026. Current projections suggest the company will report earnings of $0.28 per share, matching the results from the same quarter last year. Revenue is expected to reach $3.26 billion, a modest 0.27% increase year-over-year.

For the full fiscal year, analysts surveyed by Zacks estimate Chewy will achieve earnings of $1.28 per share and total revenue of $12.6 billion. These figures would represent annual growth rates of 23.08% and 6.21%, respectively.

It’s important for investors to monitor any recent changes in analyst forecasts for Chewy, as these updates often reflect shifting business conditions. Upward revisions are generally viewed as positive indicators for the company’s prospects.

Research indicates that changes in earnings estimates are closely tied to short-term stock price movements. The Zacks Rank system incorporates these revisions to provide investors with a straightforward rating tool.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record, with #1 ranked stocks delivering an average annual return of 25% since 1988. Over the past month, Chewy’s consensus earnings estimate has remained unchanged, and the stock currently holds a Zacks Rank of #3 (Hold).

From a valuation standpoint, Chewy is trading at a Forward Price-to-Earnings (P/E) ratio of 17.14, which is higher than the industry average of 15.45.

Additionally, Chewy’s Price/Earnings to Growth (PEG) ratio stands at 0.93, aligning with the average PEG ratio for the Internet - Commerce industry as of the last trading session. The PEG ratio, like the P/E ratio, is a key metric but also factors in expected earnings growth.

The Internet - Commerce segment is part of the broader Retail-Wholesale sector and currently holds a Zacks Industry Rank of 153, placing it in the lower 38% among more than 250 industries.

The Zacks Industry Rank evaluates the strength of industry groups by averaging the Zacks Ranks of their component stocks. Historically, industries in the top half of the rankings have outperformed those in the bottom half by a two-to-one margin.